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Draw a graph depicting interest rates at the quantity of loanable funds (such as the graph infigure 15.7). Answer the following questions regarding this graph.

Draw a graph depicting interest rates at the quantity of loanable funds (such as the graph infigure 15.7). Answer the following questions regarding this graph. (40 possible points)
a.Explain why the supply of loanable funds is upward sloping.
b.Explain why the demand of loanable funds is downward sloping.
c.If the Federal Reserve sells government bonds, show what will happen to thisgraph. Explain the effects on interest rates and the quantity of loanable funds.
d.If the Federal Reserve lowers the required reserve rate, show what will happen to thisgraph. Explain the effects on interest rates and the quantity of loanable funds.

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